THE US: GROWING GLOBAL SIGNIFICANCE

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1 ENTERPRISE PRODUCTS PARTNERS L.P. THE US: GROWING GLOBAL SIGNIFICANCE March 8, 217 Joseph Fasullo Manager, International NGLs ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. enterpriseproducts.com

2 FORWARD LOOKING STATEMENTS This presentation contains forward-looking statements based on the beliefs of the company, as well as assumptions made by, and information currently available to our management team. When used in this presentation, words such as anticipate, project, expect, plan, seek, goal, estimate, forecast, intend, could, should, will, believe, may, scheduled, potential and similar expressions and statements regarding our plans and objectives for future operations, are intended to identify forward-looking statements. Although management believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to be correct. You should not put undue reliance on any forward-looking statements, which speak only as of their dates. Forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those expected, including insufficient cash from operations, adverse market conditions, governmental regulations, the possibility that tax or other costs or difficulties related thereto will be greater than expected, the impact of competition and other risk factors discussed in our latest filings with the Securities and Exchange Commission. All forward-looking statements attributable to Enterprise or any person acting on our behalf are expressly qualified in their entirety by the cautionary statements contained herein, in such filings and in our future periodic reports filed with the Securities and Exchange Commission. Except as required by law, we do not intend to update or revise our forward-looking statements, whether as a result of new information, future events or otherwise. ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. 2

3 EPD: NATURAL GAS, NGLS, CRUDE OIL, PETROCHEMICALS AND REFINED PRODUCTS Asset Overview Pipelines: 49, miles of natural gas, NGL, crude oil, petrochemicals and refined products pipelines Storage: 25 MMBbls of NGL, petrochemical, refined products, and crude oil, and 14 Bcf of natural gas storage capacity Processing: 25 natural gas processing plants; 22 fractionators; 1 condensate distillation facilities Export Facilities: ethane, LPG, PGP, crude oil and refined products Connectivity Fully integrated midstream energy company aggregating domestic supply directly connected to domestic and international demand Connected to U.S. major shale basins Connected to every U.S. ethylene cracker Connected to 9% of refineries East of Rockies Pipeline connected to 21 Gulf Coast PGP customers ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. 3

4 LOGIC BEHIND THE FREEZE Estimated cash flows assuming reducing production by 1 MMBbls/d increase prices by $5 and $1/Barrel; Saudi Arabia, Kuwait and UAE currently produce 17 MMBPD The economics are even more compelling for higher cost producers Saudi Arabia, Kuwait, UAE Price Scenario Units Current +$5 +$1 Sales Price $/Bbl $45 $5 $55 Cost $/Bbl $15 $15 $15 Profit $/Bbl $3 $35 $4 Volume MMBPD Yearly Profits $ Billion $186 $24 $234 Source: EPD Fundamentals ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. 4

5 GLOBAL BALANCES: MOST ANALYSTS EXPECT MARKET TO BALANCE BY 2H 217 Demand / Supply Balance until 2Q17 OECD Total Oil Stocks Oil demand growth remains robust, especially in emerging markets IEA OMR, January MMBPD +1.4 MMBPD PIRA, February MMBPD +1.7 MMBPD +1.7 MMBPD Sources: IEA and PIRA ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. 5

6 Rate of Return ALL MAJOR U.S. CRUDE OIL BASINS HAVE SOLID RETURNS IN CORE ACREAGE 1% 8% 6% 4% 2% % DJ Niobrara HZ Midland Basin HZ Eagle Ford Oil Delaware Basin HZ Eagle Ford Cond Bakken Assumes $55/bbl and $3/MMBtu Half cycle economics for core wells Source: EPD Fundamentals ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. 6

7 Rate of Return ALL MAJOR U.S. NATURAL GAS BASINS HAVE SOLID RETURNS IN CORE ACREAGE 1% Rich Lean 8% 6% 4% 2% % Rich Scoop Stack Assumes $55/bbl and $3/MMBtu Half cycle economics for core wells Rich Marcellus Pinedale Rich Utica Lean Marcellus Haynesville Lean Utica Fayetteville Source: EPD Fundamentals ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. 7

8 U.S. OIL & CONDENSATE SUPPLY POTENTIAL ASSUMING SUFFICIENT MARKETS (MBPD) AK & CA ROCKIES 1, , Current ,2 2, 1,8 1,6 1,4 1,714 1,957 2,53 Current MID CONTINENT APPALACHIAN Current Current , Total Supply 5, 4, 3, 2, 1, PERMIAN 3,241 2,23 4,196 1, 5, 12,182 1,678 8,83 Current current Current , 4, 3, 2, 1, GULF COAST 4,85 3,651 3,132 Current Source: EPD Fundamentals ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. 8

9 U.S. NATURAL GAS SUPPLY POTENTIAL ASSUMING SUFFICIENT MARKETS (BCF/D) 4 AK & CA ROCKIES Current MID CONTINENT Current Current APPALACHIAN Current Current PERMIAN Current Current TX GULF COAST GULF COAST Current Source: EPD Fundamentals ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. 9

10 U.S. NGL SUPPLY POTENTIAL ASSUMING SUFFICIENT MARKETS (MBPD) ROCKIES AK & CA Current current , APPALACHIAN Total Supply 6 current , ,95 1,263 6, 5, 4, 3, 4,148 5,168 5, MID CONTINENT current current , 1, Current current NGL Components Current Ethane 1,884 2,388 2,756 Propane 1,184 1,462 1,68 N. Butane Iso Butane Natural Gasoline MBPD 4,148 5,168 5,948 1,5 1, 5 PERMIAN 942 1,37 1,759 current Current , 5 GULF COAST 1,278 1, Current current Source: EPD Fundamentals ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. 1

11 ALL ROADS LEAD TO / FROM MONT BELVIEU Diversified Asset Base Supports Global Demand Source: EPD Fundamentals ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. 11

12 Jan-12 Apr-12 Jul-12 Oct-12 Jan-13 Apr-13 Jul-13 Oct-13 Jan-14 Apr-14 Jul-14 Oct-14 Jan-15 Apr-15 Jul-15 Oct-15 Jan-16 Apr-16 Jul-16 Oct-16 Days of Demand PROPANE DAYS OF SUPPLY: EXPORT DRIVE A PARADIGM SHIFT The U.S. is now storing LPGs for the global market Propane Stocks Domestic & Exports 12, 1, 12 8, 1 8 6, MMB 6 4, 4 2 2, ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. 12

13 N G L s ENTERPRISE LPG EXPORT FACILITY Largest LPG Export Terminal in the World Refrigerated Low Ethane Propane (LE C3) HD5 Propane (C3) Isobutane (IC4) Normal Butane (NC4) LPG Mix Butane Mix PGP HOUSTON SHIP CHANNEL EHSC CROSS CHANNEL CONNECTIONS MONT BELVIEU Ship Docks Barge Docks Berth B D Draft LOA x 3 2 x 3 Beam DWT 128, 16, 16, 16, 16, 16, 13, 2, 2, Max Loading Rate LPG: 3 MBPH PGP: 3 MBPH Crude: 15 MBPH Products: 15 MBPH LPG: 3 MBPH Crude: 15 MBPH Products: 15 MBPH LPG: 3 MBPH Crude: 15 MBPH Products: 15 MBPH LPG: 3 MBPH Crude & Products: 5 MBPH Crude & Products: 5 MBPH ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. 13

14 MMbls Exported Volume (MBbl) LEADING THE WORLD IN LPG EXPORTS Enterprise ( EPD ) NGL Exports 18, 16, 14, 12, 1, 8, 6, 4, 2, - Natural Gasoline Normal Butane Isobutane Propane Ethane Year Top LPG Exporters in 213, 214, 215 and 216 EPD YTD 2 Sources: Waterborne (IHS) and EPD Fundamentals USA Qatar Algeria UAE Saudi Norway Iran Kuwait ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. 14

15 ENTERPRISE LPG EXPORT DESTINATIONS EPD Accounted for 49% of U.S. LPG Exports Far East 76.1 MMBbl (5%) Enterprise NGL MMBbl Europe/Africa 21.3 MMBbl (14%) North America 35.1 MMBbl (23%) Routing of Laden transits to Asia South America 19. MMBbl (12%) Other 3.6 MMBbl (5%) Source: Waterborne (IHS) Source: ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. 15

16 US SUPPLY WILL OUTPACE EXPORT CAPACITY MBPD 3,5 3, Export Capacity at 85% Operating Rate LPG Supply 2,5 2, 1,5 1, LPG Domestic Demand Current LPG Exports Export Capacity Addit'l Export Note: Includes Butane Dock Capacity Calculated at 85% of Nameplate Industrywide Sources: EPD Fundamentals and Company Announcements ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. 16

17 ENTERPRISE ETHANE EXPORT FACILITY Largest of Its Kind Capacity (MMBbls) Forward Base w/option Volumes Note: Volume commitments for 216 & 217 could vary depending on customer elections. MBPD Average Annual Contracted Volumes Shipbuilders Response to Increased Ethane Demand Estimated Ethane / Ethylene Vessel Capacity (1) (1) # of vessels (12+ MBbl capacity per vessel); confirmed shipbuilding orders only Source: EPD Fundamentals HOUSTON SHIP CHANNEL MORGAN S POINT ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. 17

18 U.S. ENERGY EXPORT TRENDS BECOMING GLOBALLY SIGNIFICANT U.S. Exports LPGs Refined Products U.S. Exports C5+ U.S. Exports Crude Source: EIA ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. 18

19 ENTERPRISE WATERBORNE TERMINALS Making the USGC a Hydrocarbons Hub Morgan s Point Enterprise Houston Ship Channel Seaway Texas City Beaumont Seaway Freeport Beaumont Marine West Beaumont Marine East ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. 19

20 THANK YOU ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. enterpriseproducts.com